In China and Japan, Economic Troubles Persist

In China and Japan, Economic Troubles Persist

Introduction

Since last two years international economy is facing anemic and uneven recovery from the global financial crisis, which has slowed the output growth during this year (2012), especially in developed countries. This slowed growth is not sufficient to deal with continuing economic crisis in most developed countries. China and Japan are among these developing countries; facing persistent economic issues (Wassenger, 2012). Japan is mainly reeling from the devastating earthquake and tsunami of March 11, 2011, and the nuclear crisis and huge leaks of radiation it sets off. These crises led to soul searching in a nation already hurt by the lost decades of economic growth, speedily aging and shrinking population, political paralysis, and the advancing of its longtime rival, China. As the tension between China and Japan increased due to the competing claims on an island in the East Asian Sea, Japan's political system seemed close to grinding to halt (NYT, 2012). On the other hand, China is facing significant economic problems that are likely to persist for sometime more. The country's factory outputs, export growth and retail sales has weakened and the latest statistics are showing that world's second largest economy is slowing down (CBS News, 2012). These economic crises in both the countries, China and Japan, can be analyzed through different schools of thought such as liberalism and Marxism.

Discussion

Worldwide economic growth is declining because of scarce demand, weak banking system, and the prospect of fiscal consolidation in the America and Europe. The dynamic growth in China has also slowed as its economy takes on both cyclical adjustment and domestic restructuring (Patrick, 2012). China is the largest trade partner of Japan since 2007, as the China's economy facing crisis, it is also hurting Japan's trade (Patrick, 2012). Further, Japan and China's tension has also aroused because of the dispute over the Island. Japan itself is facing many economic issues and major foreign economic uncertainties. Thus, both the countries are facing persistent economic issues.

The current issues of China and Japan are seeing to have no ultimate solution in the foreseeable future, however, if the economic ties between these countries and other developed countries will grow, it would affect positively a according to liberal view economic ties among states will lead to peace (www.du.edu). Liberalism emphasis that the cost of raging war against your economic partner ...